Gavieres Vs Tavera

8/6/2015
PHILIPPINE REPORTS ANNOTATED VOLUME 001
VOL. 1, NOVEMBER 14, 1901
71
Gavieres vs, Tavera
[No. 6. November 14, 1901.]

MANUEL GARCIA GAVIERES, plaintiff and appellant, vs.
T. H. PARDO DE TAVERA, defendant and appellee.
1. INTERPRETATION OF CONTRACTS; LOAN; DEPOSIT.
An instrument acknowledging receipt of a sum of money
as a deposit returnable two months after notice with
interest is evidence of a contract of loan and not of deposit.
2. EVIDENCE; LOAN; PAYMENT.Where plaintiff's
receipt for a sum of money, paid by defendant in
satisfaction of an unidentified balance, is introduced to
prove payment of an obligation sued upon, it will be
regarded after a lapse of thirty years as satisfaction of the
obligation in question in the absence of showing of other
obligations between the parties.
3. ID.Laches in the commencement of an action causing a
possible failure of proof will prevent court from applying
strict rules of evidence.
APPEAL from a judgment of the Court of First Instance of

Manila.
The facts fully appear in the opinion.
E. M. Llanos, for appellant.
Simplicio del Rosario, for appellee.
COOPER, J.:
The present appeal has been interposed in the declarative
action of greater import filed in the Court of First Instance
of Tondo, commenced on January 10, 1900, by Don Manuel
Garcia Gavieres as plaintiff and successor in interest of the
deceased Doa Ignacia de Gorricho against Don Trinidad
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H. Pardo de Tavera as universal heir of the deceased Don

Felix Pardo de Tavera for the collection of a balance of
1,423 pesos 75 cents, remaining due on an original
obligation of 3,000 pesos which, as the plaintiff alleges, was
the amount of a deposit delivered by Doa Ignacia
Gorricho, deceased, to Don Felix Pardo de Tavera,
deceased, on the 31st day of October, 1859. The agreement
between the parties appears in the following writing:
"Received of Senorita Ignacia, de Gorricho the sum of
3,000 pesos, gold (3,000 pesos), as a deposit payable on two
months' notice in advance, with interest at 6 per cent
72
72
PHILIPPINE REPORTS ANNOTATED

Gavieres vs. Tavera
per annum with an hypothecation of the goods now owned

by me or which may be owned hereafter, as security of the
payment.
"In witness whereof I sign in Binondo, January 31, 1859.
"FELIX PARDO DE TAVERA."
The defendant answering complaint of plaintiff alleges
among other things as a defense, that the document upon
which the complaint is based was not a contract of deposit
as alleged in the complaint, but a contract of loan, and
setting forth furthermore the payment of the original
obligation as well as the prescription of the action. The
defendant contends that the document upon which the
action is based is not evidence of a deposit, as the plaintiff
maintains, but of a contract of loan, and that the
prescription applicable to loans has extinguished the right
of action. Although in the document in question a deposit is
spoken of, nevertheless from an examination of the entire
document it clearly appears that the contract was a loan
and that such was the intention of the parties. It is
unnecessary to recur to the canons of interpretation to
arrive at this conclusion. The obligation of the depositary to
pay interest at the rate of 6 per cent to the depositor
suffices to cause the obligation to be considered as a loan
and makes it likewise evident that it was the intention of
the parties that the depositary should have the right to
make use of the amount deposited, since it was stipulated
that the amount could be collected after notice of two
months in advance. Such being the case, the contract lost
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the character of a deposit and acquired that of a loan. (Art.

1768, Civil Code.)
All personal actions, such as those which arise from a
contract of loan, cease to have legal effect after twenty
years according to the former law and after fifteen years
according to the Civil Code now in force. The date of the
document is January 31, 1859. The proof of payment in
support of the defense we consider likewise sufficient to
establish such defense. The document dated January 8,
1869, executed by Don Felix Garcia Gavieres, husband and
legal
representative
of
Doa
Ignacia
Gorricho,
acknowledges the receipt of 1,224 pesos from Don Manuel
Darvin,
73
VOL. 1, NOVEMBER 16, 1901
73
United States vs. Abalos
representative of the deceased Don Felix Pardo de Tavera.

This sum is declared in said document to be the balance
due upon the debt of 2,000 pesos. This was slightly more or
less the amount which remained as due upon the original
obligation after deducting the payments which are
admitted to have been made. In the absence of evidence
disclosing that there were other claims in favor of Gavieres
it is reasonably to be supposed that this payment was made
to satisfy the balance due upon the original obligation.
The original contract between the parties was celebrated
nearly a half century ago; the contracting parties have
ceased to exist long since; it may be that there exists or
may have existed documents proving a total payment
between the parties and that this document has some time
ago suffered the common fate of perishable things. He who
by laches in the exercise of his rights has caused a failure
of proof has no right to complain if the court does not apply
the strict rules of evidence which are applicable in ordinary
cases, and admits to a certain extent the presumption to
which the conduct of the interested party himself naturally
gives rise.
It is our opinion that the judgment of the Court of First
Instance should be affirmed, and it is so ordered, with costs
of appeal taxed against the appellant.
Arellano, C. J., Torres, Willard., and Mapa, JJ.,
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concur.
Ladd, J., did not sit in this case.
Judgment affirmed.
________________
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8/6/2015

PHILIPPINE REPORTS ANNOTATED VOLUME 001

VOL. 1, NOVEMBER 14, 1901